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VC-1 is a new video coding standard developed by Microsoft and standardized by the SMPTE. VC-1 is one of the three video compression algorithms standardized for high definition DVD. With high definition DVD players expecting to support MPEG-2, H.264, and VC-1, end users do not have to be concerned about the coding formats. The VC-1 standard offers a competitive quality-complexity tradeoff compared to H.264, especially for high-definition services. With a diverse digital video market, we can expect to see VC-1 co-existing with H.264 in the next generation of broadband and broadcast video services.